A stock is expected to pay a dividend of 225 the end of the


Valuation of a constant growth stock

A stock is expected to pay a dividend of $2.25 the end of the year (that is, D1 = $2.25), and it should continue to grow at a constant rate of 9% a year. If its required return is 13%, what is the stock's expected price 4 years from today?

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Financial Management: A stock is expected to pay a dividend of 225 the end of the
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